Municipal Employees

Traditional vs New Generation Medical Schemes

Do you choose a Traditional or New Generation Medical Scheme?

While a savings-type option as found in LA Health may be perfect for a young and healthy individual, it may not be the appropriate choice for a person or family with extensive day to day cover requirements.

Consider the information below which will lead you to the correct scheme for you and your family:

Traditional medical schemes give you a set amount of benefits for a certain benefit category – for example, you can have ten GP visits, two basic dentistry visits, one optometry visit and R5 000 per year for medication.  Once you have used up your GP visits, you will have to pay out of your pocket for visiting the GP for the rest of the year – but you can still get your medication from the pharmacy, and visit the dentist or optometrist.

A New Generation option works according to an amount of money debited to your medical aid account at the beginning of the year, and you then decide how and when to use the money, for any out-of-hospital expenses, including GP’s, dentistry, optometry and medication. For example, if you are allocated an amount of R10 000 per year in your savings, there is no limit to what you can spend the money on – but once it’s finished, you generally have to self-fund the rest of your day-to-day medical expenses, however should you manage to save you carry these saved funds over into the following year, affording you the opportunity of building up the savings fund.

We have fully accredited and qualified Consultants, representing the best Medical Schemes

We have fully accredited and qualified Consultants, representing the best Medical Schemes

Traditional medical schemes are generally better for:

Families with young children, who visit the GP or specialist on a regular basis, and have to claim for medication often, Families requiring orthodontics or specialized dentistry benefits, or on going blood test and x-rays – in short, families who use a wide range of day to day benefits will be more suited to a traditional option.

Advantages: Wider range of benefits, running out of one benefit will not influence the other benefits, you know exactly how much benefits you have for which category at the beginning of the year.

Disadvantages: If you don’t use the benefits, they do not get carried over to the next year, you may pay for benefits you will never use.

New-Generation schemes will suit:

Healthy individuals, who don’t need too much day-to-day cover, but want peace of mind that if they do visit the doctor or the dentist a few times a year, the cost will be covered.
Families with older children, where it is not necessary to visit the doctor at the slightest sign of the sniffles and where over-the-counter medication will suffice.
Individuals who seldom visit the doctor or buy medication but who have extensive dental or optometry expenses – where the amount claimed will not be prescribed by sub-limits within your day-to-day benefits, but rather by the amount of savings available.
Advantages: You have the freedom to choose how you want to spend your savings, any unused portion is carried over to the next year. A sickly family member has access to the entire savings account for treatment
Disadvantages:  Once the savings are depleted, you have no benefits for any category for the rest of the year.